TaxTMI 
TaxTMI 
2011 (11) TMI 113
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....g gross agricultural income as concealed income, as I have already shown the Income in my Return of Income and there is nothing new the Income Tax Officer has found out. I had filed revision petition u/s 264, after three hearing, the learned Commissioner of Income-tax advised me to withdraw the petition and go for appeal before the appellate Commissioner with the understanding that he will drop the proceeding u/s 263. (2) The Commissioner of Income Tax (Appeals) has also confirmed that the Income is an agricultural income and hence not liable to be treated as income from other sources (Copy of the order attached). (3) The order of the Commissioner of Income Tax u/s 263 was based on the order of Income Tax Officer - ward 3(1) Rajkot, a....
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.... the original assessment assessing officer ought to have assessed agricultural income as undisclosed income at Rs. 4,95,000 instead of Rs. 4,05,000. The Commissioner was of the view that the assessee has disclosed gross agricultural income of Rs. 4,95,000 and after claiming expenses of Rs. 90,000 the net agricultural income was Rs. 4,05,000. The Commissioner therefore, directed the assessing officer to enhance the assessment by taking gross agricultural income declared in the return of income, i.e. Rs. 4,95,000 instead of net agricultural income taken in the original assessment. While directing the assessing officer, the Commissioner held that in the original assessment the assessing officer has examined only the issue whether there was any....
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....nce of the functions of an Assessing Officer conferred on, or assigned to, him under the orders or directions issued by the Board or by the Chief Commissioner or Director General or Commissioner authorised by the Board in this behalf under section 120; (b) "record" shall include and shall be deemed always to have included] all records relating to any proceeding under this Act available at the time of examination by the Commissioner; (c) where any order referred to in this sub-section and passed by the Assessing Officer had been the subject matter of any appeal filed on or before or after the 1st day of June, 1988, the powers of the Commissioner under this sub-section shall extend and shall be deemed always to have extended to such mat....
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....ejudicial to the interests of the Revenue, must be based on materials on the record of the proceedings called for by him. If there are no materials on record on the basis of which it can be said that the Commissioner acting in a reasonable manner could have come to such a conclusion, the very initiation of proceedings by him will be illegal and without jurisdiction. The power of suo motu revision under sub-section (1) is in the nature of supervisory jurisdiction and the same can be exercised only if the circumstances specified therein exist. Two circumstances must exist to enable the Commissioner to exercise power of revision under this subsection, viz. (1) the order is erroneous ; (2) by virtue of the order being erroneous prejudice ....
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.... some changes. The Commissioner, on perusal of the records, may be of the different opinion than the opinion of the Income-tax Officer. That would not vest the Commissioner with power to re-examine the accounts and express different opinion. It is because the Income-tax Officer has exercised the quasi-judicial power vested in him in accordance with law and arrived at a conclusion and such a conclusion cannot be termed to be erroneous simply because the Commissioner does not feel satisfied with the conclusion. It may be said in such a case that in the opinion of the Commissioner the order in question is prejudicial to the interests of the Revenue. But that by itself will not be enough to vest the Commissioner with the power of suo motu revis....